Sponsored briefing: Hot topics in Turkish renewable energy market

Sponsored briefing: Hot topics in Turkish renewable energy market

As of February 2022, Turkey’s renewable energy capacity is approximately 53,500 MW amounting to just over half of Turkey’s total installed capacity. This was largely thanks to YEKDEM, Turkey’s USD-based feed-in tariff. Depending on the renewable energy source, this mechanism provided guaranteed purchase prices between US$7.3 and US$13.3 per KWh for the first ten years of the operation period.

The USD-based YEKDEM was replaced by a TRY-based YEKDEM for the power plants commissioned after 30 June 2021. Although the TRY-based prices are escalated, this new YEKDEM has not provided a meaningful contribution to the installation of new renewable capacities. This is mainly due to the heavy devaluation of TRY, which triggers higher interest rates and equity contribution requirements. Continue reading “Sponsored briefing: Hot topics in Turkish renewable energy market”

Sponsored briefing: Impact of ESG on M&As and financings and trends to watch

Sponsored briefing: Impact of ESG on M&As and financings and trends to watch

Economic decisions over the years have had major impacts on the scarce resources of the planet. Overconsumption and over-production brought the environment to a state of destruction and degradation. Consequently, all these alarming developments have led the academics, analysts, commentators, and scientists to work on the solutions to prevent a catastrophic future. As a result, sustainability has become one of the key considerations in decision-making processes.

Sustainability often consists of interdependencies that exist between environment, society, and economy. These three factors can be referred to as Triple Bottom Line and 3Ps as they may also be called as people, planet and profit. Under this Triple Bottom Line measuring system, unlike the traditional reporting framework, organisational performance is measured using environmental and social dimensions along with economic aspects. These are also important elements to measure the sustainability goals. Continue reading “Sponsored briefing: Impact of ESG on M&As and financings and trends to watch”

Sponsored briefing: Legal framework for Turkey’s transition to e-mobility has been introduced

Sponsored briefing: Legal framework for Turkey’s transition to e-mobility has been introduced

Based on the aim of compliance with the objectives of the European Green Deal, Turkey’s e-mobility sector has been experiencing a significant development to reduce greenhouse gas emissions from the transportation sector and to accelerate the transition to a cleaner and more sustainable mobility. Therefore, Turkey has recently introduced new regulations and various incentive schemes relating to e-mobility.

In this context, an amendment of the Electricity Market Law Nr. 6446 entered into force on 21 December 2021 that regulates the procedures and principles on e-mobility activities as well as the rights and obligations of the market participants. Furthermore, new regulations on operation licences for electric vehicle charging stations and on installment of charging points in parking areas have been introduced. In addition, regulations that provide the legal framework for the e-scooter sector as a significant part of micro-mobility entered into force. The Turkish government has also adopted incentives for investments in electric vehicle charging stations. As a result of these regulations, it is expected that the number of electric vehicles and the electric vehicle charging stations will significantly increase in Turkey within the following years. Continue reading “Sponsored briefing: Legal framework for Turkey’s transition to e-mobility has been introduced”

Sponsored Q&A: Osman Ertürk ÖZEL, LL.M., managing partner, ÖZEL Attorney Consultancy

Sponsored Q&A: Osman Ertürk ÖZEL, LL.M., managing partner, ÖZEL Attorney Consultancy

Given Turkey’s recent economic problems including the currency crash and inflation together with continued problems created by the Covid-19 pandemic, how is this affecting your firm?

The economic recession in Turkey existed a year before the beginning of Covid. Covid has just made this situation obvious. Serious fluctuations in currency along with over 100% inflation rate have deepened the existing economic crisis. This has caused a disruption in all kinds of production in the markets. The fact that banks kept up the markets through loans has greatly disrupted the balance in the market. As a consequence, the case portfolio in our office has shifted to legal procedures such as breach of contract, mediation, litigation and internal arbitration. Continue reading “Sponsored Q&A: Osman Ertürk ÖZEL, LL.M., managing partner, ÖZEL Attorney Consultancy”

Sponsored briefing: Recent patent highlights in Turkey

Sponsored briefing: Recent patent highlights in Turkey

Geographically positioned between Europe and Asia, Turkey is a strategically placed country, with a population of 82 million and a larger youth population than any EU member state. Taking its place on the list of G20 countries, Turkey aims to position itself in the global value chain and strengthen its export platform by focusing on high-tech patents, including electronic machinery and equipment, automotive spare parts, railway and maritime transport, energy generation and efficiency projects. In addition, as a natural transport hub, Turkey is a transitional trade platform between Europe and Asia, which significantly increases the relevance of appropriate IP rights protection.

Turkey has substantially harmonised its intellectual property laws with the EU legislation and the international agreements such as the Paris Convention and TRIPs, to provide effective legal means for enhanced patent enforcement capabilities. Continue reading “Sponsored briefing: Recent patent highlights in Turkey”

Sponsored briefing: Turkish Citizenship by Investment

Sponsored briefing: Turkish Citizenship by Investment

The geopolitical and strategic importance of the Republic of Turkey – established in 1923 by its founding father Mustafa Kemal Atatürk – to the European Union, America, Russia, the Middle East, and Asia is undeniable. Being a central meeting point of the continents of Asia, Europe, and Africa via the Mediterranean, and its membership of NATO, the Council of Europe, and its current accession talks with the European Union has meant that Turkey has become a significantly important partner for many states around the world.

According to the Turkish constitution, the word Turk, as a political term, includes all citizens of the Republic of Turkey without distinction of or reference to race or religion. Although more than nine-tenths of the population identify their religious identity as Muslim, Turkey is nonetheless a secular country. Certainly, in 1928 Islam was removed as the official state religion and since then, the military has maintained a vigilant watch over Turkey’s political secularism. Continue reading “Sponsored briefing: Turkish Citizenship by Investment”

Sponsored briefing: Surprise decision ban as a novelty in Turkish labour law

Sponsored briefing: Surprise decision ban as a novelty in Turkish labour law

Yavuz & Uyanik & Akalin’s Murat Uyanik on the importance of the rule of law and the right to legal certainty in Turkish law

Labour Law in Turkey is one of the areas of law in which the most lawsuits are filed and with the highest number of file transfers to the Supreme Court, until the recent launch of the Appeal Courts. This matter is confirmed with the data published by the Ministry of Justice at the end of 2019. According to the relative data, 1,513,943 labour cases were filed between the years 2012 and 2019. According to the aforementioned data, the number of ongoing cases at the end of the year 2019 is 543,692. Upon the multiplying increase in the number of labour cases each year and the Supreme Court’s failure to bear the litigation burden, it has also been observed that the number of chambers coping with labour law disputes has increased to three in the last decade. Continue reading “Sponsored briefing: Surprise decision ban as a novelty in Turkish labour law”

Sponsored briefing: Product Safety And Technical Regulations Law Numbered 7223 and the compensation liability of the manufacturer

Sponsored briefing: Product Safety And Technical Regulations Law Numbered 7223 and the compensation liability of the manufacturer

As part of the European Union harmonisation process, the Turkish parliament has adopted the Product Safety and Technical Regulations Law (the PSTRL). The PSTRL, published on 12 March 2020, has entered into force one year after its publication just recently, on 12 March 2021. Just before the PSTRL entered into force, the General Product Safety Regulation was also published. The provisions regarding PSTRL are prepared considering the European Union Product Liability Directive dated 1985. By the promulgation of PSTRL, which has been expected for a long time and is an important part of the EU harmonisation process, the product liability has been regulated as a whole through a general act of parliament. The doctrine, which was in the expectation of a law that complies with EU regulations, has long advocated the need of regulating the manufacturer’s absolute responsibility not only to the consumers but also to all third parties.

PSTRL’s main purpose is to regulate in detail the requirements in relation to the safety of all kinds of products, and in case of contradiction with such requirements to ensure that the responsible party, such as the manufacturer or importer, provides appropriate compensation for the damages caused by the non-conforming product to the customer’s health or property.

The products that are exported or aimed to be exported to the EU member states are deemed presented to the market within the scope of this law. On the other hand, the products that are exported and planned to be exported to countries other than those within the EU are excluded from scope of PSTRL. Nevertheless, these products must also be safe, not subject to adulteration, and the marking, labelling and certification of the product must be done in a manner that will not mislead the buyer.

The responsible persons from product liability are defined in PSTRL as the manufacturer or importer of the product.

Obviously, not only consumers can be harmed by a product, but non-consumers also need protection as well. Despite this obvious need of a general rule, there is no regulation in law on the Protection of the Consumer and also in the Turkish Code of Obligations regarding the product liability. In fact, PSTRL was adopted as a response to the urgent need of a special regulation of the product liability, and the gap related to this matter under Turkish law. Thus, the standard of the EU that the responsibility of the manufacturer is not only towards the consumers, but against all third parties, has been introduced in Turkey as well.

PSTRL uses the concept of inappropriate product instead of failure or defective product as a condition of the product liability to be triggered. In accordance with the PSTRL, no limitation has been made in the responsibility of the manufacturer, in terms of both personal and property damage, or pecuniary and non-pecuniary damage.

It was designated in article 21 of the PSTRL how the liability of the manufacturer or importer will be extinguished as well. Since the product is considered safe as a presumption pursuant to PSTRL article 5, the manufacturer or importer can avoid responsibility by proving the product’s compliance with the technical requirements regarding human health and safety. So the manufacturer or importer companies should prepare their set of arguments towards potential claims, that has to be based on the ‘compliance with technical requirements’.

In addition to the above, there are other remarkable novelties in PSTRL that especially aim to ensure the safety of consumers including in e-commerce. Pursuant to article 17 of PSTRL, access to the web pages that sell or advertise inappropriate products will be denied. Furthermore, in order to maintain transparent background for the consumers, the names of all of the persons in the supply chain will be recorded. This traceability will also provide an opportunity to prevent informal economy. Once a product is detected to be inappropriate, these products will be recalled from the market and this will provide the safety of the consumers.

The spectrum of the PSTRL is so broad that, the companies that are no party to any contract with the damaged person, such as car manufacturers, durable goods manufacturers, spare parts manufacturers, etc. would be legally responsible without question. In some cases insurance companies may request their recourse claims that have resulted from adulterated goods, from manufacturers or importers. Therefore global manufacturing companies and their importer affiliates may face direct claims from Turkey within the scope of the PSTRL. We hope that with PSTRL, the safe economic conditions for both national and foreign investors globally will be established and not only consumers, but also everyone who suffer from the hazardous effects of inappropriate products will be protected.

For more information, please contact:

Mehmet Selim Yavuz

Yavuz & Uyanik & Akalin
Etiler Mahallesi Tepecik Yolu No:82 Dalmaz Konut Apt. K:3 D:5 34337 Etiler, Beşiktaş

T: +90 212 351 30 50
E: info@yavuz-uyanik.av.tr

www.yualaw.com

Sponsored briefing: Is Turkey’s first regulation on crypto-assets just a beginning?

Sponsored briefing: Is Turkey’s first regulation on crypto-assets just a beginning?

Although it remains unclear whether cryptocurrencies will replace traditional money in the near future or ever, they have become a global phenomenon lately. Likewise, the economic turbulence in Turkey has led to a surge in swapping the local currency for cryptocurrencies despite their price volatility. According to a recent survey, Turkey has the fourth-highest rate of cryptocurrency use out of 74 countries1.

Background of Recent Developments

With the growing popularity of the crypto market in Turkey, the government’s concerns about using cryptocurrencies for illegitimate activities such as money laundering, terrorist financing, and tax evasion have gradually increased. As a response to all these matters, the signals of the legislative framework for the crypto-assets have been given under Turkey’s 11th Development Plan2. Turkey’s economic roadmap also unveils that the Central Bank of the Republic of Turkey shall foster the financial, technologic, and legal infrastructure of digital money by the end of this year3. Continue reading “Sponsored briefing: Is Turkey’s first regulation on crypto-assets just a beginning?”